The effect of a customer-centric approach towards doctors in a private hospital M van der Westhuizen 12877212 Mini-dissertation submitted in partial fulfilment of the requirements for the degree Magister in Business Administration at the Potchefstroom Campus of the North-West University Supervisor: Dr WJ Coetzer May 2014
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The effect of a customer-centric approach towards doctors in a private hospital
M van der Westhuizen
12877212
Mini-dissertation submitted in partial fulfilment of the requirements for the degree Magister in Business
Administration at the Potchefstroom Campus of the North-West University
Supervisor: Dr WJ Coetzer
May 2014
i
ACKNOWLEDGEMENTS
I feel grateful and blessed when looking back on three years in studying towards my
MBA. This of course would never have been possible without the support and
assistance of important persons in my life. My sincerest thank you to all of the below:
Our heavenly Father. He has provided in so many ways. When our son was
diagnosed with eye cancer, He gave me the strength to persevere and reach the
point where I am today. He gave me the courage I needed to conquer all
challenges faced.
My wife for always being there, caring for the children when I had to honour my
commitments and for all your love and support. Thank you for all the
encouragement. You and the children truly bring joy to my life.
My children – Hesmari and Wian, I have drawn the most of my inspiration from you.
You always give me the will to stand up and face another day. Thank you for being
the wonderful children you are. Thank you for all the sincere love any father may
ask for. Hesmari, only three years old, and you are already the big sister a brother
could ask for. Your fighting spirit, witty answers and strong will makes you the
beautiful little girl you are today. Wian, through all the tests and treatments, you
always remained a friendly, smiling little boy – a true inspiration.
My parents, Johann and Merle van Sandwyk, thank you for all the lessons I could
learn from you. Thank you for your invaluable support, love and influence in my life.
You also made this possible.
Natasha Peters and Marna Vosloo, the two biggest friends that I have gained during
my MBA studies. Your support, hard work and cooperation made it possible for me
to reach the stage where we are now.
The PBS management and lecturers. Thank you for sharing your knowledge and
for inspiring me to reach greater heights.
Dr. Wilma Coetzer, thank you for being a great study leader. I really appreciate
your honest feedback, your support, time and effort. Thank you for always listening
and motivating me, beyond the call of a study leader.
Elmari Snoer for proof reading my mini-dissertation and your valuable inputs.
The people in my department at work, you have lightened my burden through your
support and humour. You are the best team any manager can ever ask for.
A hospital is a “people business” (Li, 2010). Customers within the hospital environment
are not only searching for medical care, but an integrated experience. Li (2010)
indicated that the presence of other service providers residing within the hospital
vicinity, such as laboratories, radiologists, pathologists, cafeteria, specialists, etc.,
contributes to an integrated experience. Coe (2004:1324) also indicated that healthcare
workers are more often than not challenged with high customer service expectations.
Private hospitals therefore have to focus on a well executed service delivery.
According to data available from the Hospital Association of South Africa (HASA1)
(2009), the South African private hospital industry consists of many hospitals with three
distinct hospital groups and smaller independent hospitals. These hospital groups form
a network of hospitals across Southern Africa of which Life Healthcare, Netcare and
Mediclinic have an 80% market share (HASA, 2013). Each group has a different view
on customer services relating to doctors.
Pretorius (2011), Chief Executive Officer of Mediclinic Southern Africa, believes that the
strength of Mediclinic lies in the recruitment and retention of top medical practitioners.
Mediclinic (2013a) are committed to science-based, patient centric healthcare and strive
towards providing word-class acute care. In addition, Mediclinic also focus on the
importance of having medical practitioners in private practice that encompass a wide
range of specialities.
1 The Hospital Association of South Africa (HASA) is a body which link private hospitals with other organisations, including government, the general public, healthcare stakeholders and the media. HASA and its members are committed to provide healthcare services to South Africa (HASA, 2013).
4
Life Healthcare (2013a) do not employ the doctors that work within their facilities, but
opined that doctors are attracted to their hospitals, because of modern facilities, new
technology, the quality of care provided by their nursing staff and management's
understanding of the doctors’ needs. Life Healthcare (2013a) further indicated that in
order to support their doctors and maintain a first class environment, they invest money
to replace, upgrade and improve their facilities into new hospitals, wards and theatres.
Also much is spent on technology and equipment to expand services and capabilities.
Lastly, they invest in new developments and business opportunities.
Netcare (2013a), as Life Healthcare (2013a), are of the opinion that they provide
doctors with the best possible setting in which they can work. This setting includes the
provision of quality nursing care, the latest technology, word-class facilities and well-
trained staff. Netcare (2013a) further believe that they support doctors by providing
excellent patient care to all patients. They indicated that they strive to have strong
partnerships with doctors, in order for them to build their organisation and brand.
Netcare (2013a) further indicated an ongoing improvement of their facilities as doctors
have the opportunity to comment on all aspects of their relationship with the
organisation.
Gunning (2009:57) indicated that “A customer centric organisation focuses primarily on
the needs and behaviours of its customers, rather than internal drivers or internal
constraints that can unnecessarily limit customer offerings”. Wagner and Majchrzak
(2007:19) indicated that only the customer self can articulate these needs. The
perceived customer centric relationship between medical facilities and specific private
hospitals and the medical practitioner is an area that still needs to be more explored
within the South African context. The question can be raised whether the hospital's
view regarding customer services align with that of the medical practitioner. A stronger
focus on medical practitioners as customers of hospitals are therefore needed.
1.3 RESEARCH OBJECTIVES
The research objectives are divided into general and specific objectives.
5
1.3.1 General Objective
The general objective of this research was to determine medical practitioners’,
associated with a private hospital, understanding and expectations of customer
centricity.
1.3.2 Specific Objectives
The specific objectives of this research were:
To determine how customer centricity is conceptualised in literature;
To determine the similarities and differences between customer service and
customer centricity, as described in literature;
To determine how customer centricity is defined by medical practitioners associated
with a private hospital;
To determine the expectations of medical practitioners, associated with a private
hospital, in terms of customer centricity from the hospital; and
To make recommendations for future research.
1.4 RESEARCH METHOD
This research, pertaining to the specific objectives, consists of two phases, namely a
literature review and an empirical study.
1.4.1 Phase one: Literature review
Phase one provides a review of the literature pertaining to the specific topic. Books
(see reference list), academic journals and Internet sources were consulted to give a
theoretical exposition of and to prepare for this presentation (study). Literature was
Bourne (2012:64) makes this even more evident by noting that although the effect of
quality and price on customer behaviour is important, the biggest differentiating factor is
friendly, excellent and efficient customer service. Heskett et al. (1994:164) also
indicated that when customers are satisfied with the services received that their loyalty
towards the organisation will increase. There appears to be a direct link between
customer loyalty and customer satisfaction (Homburg & Giering, 2001:43).
For organisations to benefit from the competitive advantage gained from excellent
customer service, they need to firstly understand customer service from the customer’s
point of view. This will enable the organisation to deliver effective customer service that
stands out in a customer’s mind, which will distinguish the organisation when compared
to poor customer service delivered by many organisations (Price, 2012:17).
In order to have a spirit for service in an organisation, a system for service is needed.
This is even more evident within the private healthcare industry where doctors prescribe
the care to patients and hospitals deliver the care as prescribed. According to Scott
(2013:64-65) a service culture in healthcare organisations can be created if leaders
within the industry pay attention to the following:
15
Raise awareness of customer service and create the correct mindset towards it
within the organisation;
Set service expectations and standards of behaviour. These standards of
behaviour should be set and reinforced, and should not merely be a “wish list”.
Price (2012:18) indicated that the mission statement of an organisation should be
aligned with clear, concise, observable, measurable and realistic service
expectations. Employees should also understand that compliance to service
expectations will be measured on a regular basis;
Identify and eliminate barriers and obstacles, including policies, procedures, norms
and protocols that inhibit the delivery of satisfying customer care;
Listen to customers through measurement and feedback techniques, which provide
valuable data to rectify non-compliance with set service expectations. This can
serve as a basis to empower and train staff and create a platform where set service
expectations can be reviewed and adapted. Band (1988:16) noted that
management should ensure that platforms for feedback are created for customers
and that staff members should be rewarded for complying with set expectations;
Learn and develop skills of staff members at all levels, by making use of all learning
opportunities to engage staff in this process and ultimately making them responsible
for the delivery of good customer services. It is also important to equip leaders with
the necessary tools to lead their teams to service excellence. This is as important
as financial growth and viability. Continuous improvement should be reinforced and
supported, as it is difficult to keep energy, learning initiatives, improvement and
commitment alive. Management should also reflect service excellence at all times,
as this may lead to an increase in staff members reflecting the same type of
behaviour. Price (2012:16) agrees with this statement and is of the opinion that
customer service is a leadership matter. It is therefore important for leaders to
model and reward good customer service.
Heskett et al. (1994:165) indicated that customer service requires a special type of
leadership, where leaders of an organisation place emphasis on the importance of
employees and customers. In their research they developed a service-profit chain
though the analyses of successful service organisations. Within this service-profit chain
relationships between profitability, customer loyalty, and employee satisfaction, loyalty
16
and productivity were established. Heskett et al. (1994:165) indicated that the specific
linkages in the service-profit chain are (See Figure 2.1):
Customer loyalty drives profitability and growth;
Customer satisfaction drives customer loyalty;
Value drives customer satisfaction;
Employee productivity drives value;
Employee loyalty drives productivity;
Employee satisfaction drives loyalty;
Internal quality drives employee satisfaction; and
Leadership underlies the chain’s success.
Figure 2.1: The links in the service-profit chain (Heskett et al., 1994:166)
Homburg and Giering (2000:57) acknowledge and support the research and model of
Heskett et al. (1994), but are of the opinion that previous research has neglected the
moderator effects on the relationship between satisfaction and loyalty. Other important
moderators in the satisfaction-loyalty link seem to be age and income of the customer.
Shah et al. (2006:113) noted that: “it is the customer who determines what a business
is, what it produces, and whether it will prosper”. The role of the customer, inclusive of
age, income, gender and other demographic elements, plays a vital role in
organisations when defining customer service and service expectations.
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2.3 CUSTOMER CENTRICITY
Shah et al. (2006:113) indicated that customer centricity is not a modern term, but noted
that it has only been in recent years that organisations have truly embraced this
concept. A simplistic definition of customer centricity is placing the customer at the
centre of a company’s marketing effort, focusing on customers rather than sales
(Dictionary.com, 2013). It is a specific approach in doing business that focus on the
customer (Investopedia, 2013). Organisations focused on customer centricity ensure
that the customer is at the centre of the organisation’s philosophy, operations or ideas
and they operate from the belief that their customers are the only reason they exist.
These organisations will use every mean possible to keep the customer happy and
satisfied (Investopedia, 2013).
JL Watson Consulting (2012) indicated that a customer centric focus, in its simplest and
most pure sense, means making the customer's life easy. It involves designing
processes that are focused on delivering a positive experience to the customer, making
it extremely easy for the customer to learn about the organisation, do business with the
organisation and get support from the organisation when it is needed. Customer
centricity is the alignment of an organisation's resources to effectively respond to the
ever-changing needs of the customer, while building mutually profitable relationships
(Bailey & Jensen, 2006:3).
In order for organisations to sustain performance in uncertain market conditions,
organisations need to be conscious that customer profiles are becoming more diverse
with ever changing needs whilst customer loyalty is also on the decrease (Tyrer,
2009:11). With the change in the complexity of customer expectations it is becoming
more difficult and challenging for organisations to fulfil the expectations of the customer
and still make a profit (Millstein, 2007:2A; Tyrer, 2009:11). Adding to the challenge,
Shah et al. (2006:114) indicated that executives continuously add pressure on
marketing departments to realise increased productivity, competition in the majority of
industries are increasing, customers and consumers are becoming more informed and
demanding, and technology is advancing.
Organisations therefore have to truly understand who their customer is and what their
needs are. Information of customers should be gathered by means of customer
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surveys, interviews with customers and observation of customers’ behaviour, where
customer involvement plays a vital role (Bailey & Jensen, 2006:6). Organisations,
having this knowledge, can provide the right service to the customer at the right time
and place (Womack & Daniel, 2005:61). Gummesson (2008a:323) concur with the
above and opined that organisations and people are brought together through the
establishment and maintenance of relationships. Organisations should therefore
interact with customers in these relationships and not merely manage the relationship
with the customer. A balanced centricity should therefore be achieved with mutually
beneficial relationships with all stakeholders inclusive of customers.
Shah et al. (2006:113) noted that organisations which are truly customer centric can
experience a 30% higher return on investment (ROI) on marketing efforts than their
peers not embracing customer centricity. Customer centricity is becoming imperative
for the gaining of a competitive advantage in a crowded marketplace (Evans, 2008:22).
Taking a holistic view of the organisation and all stakeholders will result in the provision
of quality services to the end customer in line with their needs. Gummesson (2008b:16)
indicated that improvement even in other operational areas such as production within an
organisation may lead to improved customer service. Not denying the need for proper
customer relationship management, Tyrer (2009:13) indicated that organisations seem
to shift their focus more to customer experience management. This implies utilising the
knowledge gained of the customer through customer analysis and segmentation to
reach the right customer at the right time by means of effective channels whilst
remaining focused on the solution and forming effective partnerships. Through
customer segmentation and predictive analyses, organisations can identify market
opportunities, risks in competition, invest in accurate business and market intelligence
and have knowledge of the exact factors that influence the buy behaviour of customers
(Tyrer, 2009:13).
Burman, et al. (2011:50) indicated that customer programmes are generally set under
the notion of customer relationship management and that they tend to usually focus on
the technical aspects. They further opined that customer relationship management
does not incorporate the actual needs and expectations of customers and the way in
which these needs and expectations should be addressed. Customer centricity
19
therefore closes the evolving gap through a systematic approach of managing customer
needs (Shah, et al., 2006:122).
Organisations that are customer centred realise and acknowledge the value that their
customers add to their specific organisation (Jacobson, 2002:20). These organisations
will also stay close to their customers in uncertain times and will constantly ascertain the
needs of their customers and their performance against expectancies. Customer
centric organisations provide customer experiences that are relevant. These
experiences should be designed in such a way that the organisation places itself in the
position to capitalise on opportunities, which will ensure profitable growth. These
opportunities should be tailored to the preferences of targeted customers or customer
segments (Tyrer, 2009:15).
Whilst customer centric organisations explore ways to satisfy the needs of their
customers with delivering greater value, making it easier and a more delightful
experience, customer focused organisations only fulfil customer needs in so far as they
are self-serving and address the organisation’s imperatives (Finkelstein, 2013). The
main difference between customer service and customer centricity appears to relate to
meaningful changes that customer centric organisations make in addressing their
customers’ expectations and providing reciprocal support. Customer centricity seems to
take customer service thus a step further with regards to service delivery.
In order to assist hospitals in providing a customer orientation that is in line with the
expectations of the consumers, i.e. medical practitioners as per this research, and that
also embraces the principles of customer centricity, a strong focus on medical
practitioners as customers of a hospital is needed. In other words, recognising that
customers, and specifically medical practitioners, contribute inputs to the hospital, much
like employees, which impact the hospital’s productivity both via the quantity and quality
of those inputs and the resulting quality of output generated (Bitner et al. 1997:97).
However, to understand how hospitals, specifically within the private sector, need to
review and adjust their customer orientation, it is imperative to understand the
healthcare industry within the South African context.
20
2.4 HEALTHCARE IN THE SOUTH AFRICAN CONTEXT
The South African healthcare environment consists of two sectors, namely large public
(managed by government) and smaller, higher quality private healthcare. Individuals
and entities that form part of the South African healthcare system are healthcare
providers (which include doctors, pharmacists and allied professionals, such as
physiotherapists and dieticians), pharmaceutical companies, hospitals, health insurers
and healthcare suppliers (Boshoff & Gray, 2004:27; Centre for Development and
Enterprise (CDE2), 2011:38; Expatica, 2012; Medpages, 2013). “The South African
health care system is the sum of all the organisations, institutions, resources, people
and actions whose primary intent is to promote, restore and maintain health”
(Department of Higher Education and Training (DHET), 2013:1).
The South African healthcare system is unique to those of other countries. It is dynamic
and multifaceted. The legislative framework within the healthcare system gives South
African citizens the right to access healthcare services. This framework has a major
impact on both the public and private sectors, due to a skewed financing system in
healthcare (Department of Health (DOH), 2013; DHET, 2013:1).
Coovadia, Jewkes, Barron, Sanders and McIntyre (2009:826) estimate that only 15% of
the South African population make use of private medical schemes for the funding of
healthcare services provided by the private sector. However, 46% of total healthcare
expenditure is offered by these medical schemes. Another 21% of the population make
use of the private sector by means of private payments, although they mainly make use
of the public sector for the provision of healthcare services. The remainder of the
population (64%) make solely use of public health services that are made available to
them. Private hospitals and specialists constitute for 56% of medical aid expenditure
(Coovadia et al., 2009:826). Kohli et al. (2001:173) indicated that patients rely on
doctors to determine the hospital in which they will be treated.
2 CDE is an advocacy agency which conducts research on policies. The focus of CDE is on how critical development issues impact democratic consolidation and economic growth. Policy recommendations are made on the basis of research in international as well as South African contexts. Economic and social issues are addressed in these recommendations (CDE, 2013).
21
The current Ministry of Health is known for relatively fair policy making. However, the
execution, monitoring and evaluation of these policies are not receiving the attention it
should (CDE, 2011:32; Coovadia et al., 2009:831). The variability in the quality of
healthcare provision of the public sector highlights less than adequate productivity,
leadership, management and stewardship within this sector. Well managed public
hospitals obtain better financial and clinical results, with the contrary also being true
(CDE, 2011:32; Coovadia et al., 2009:831). The management of private healthcare
organisations distinguish them from the public organisations because of their knowledge
and experience in the provision of high quality and cost effective healthcare services
(CDE, 2011:33). Thus, the majority of South African citizens currently do not have
access to high quality healthcare services (DOH, 2013). General practitioners and
specialists concur with this view in a recent study conducted by Medical Chronicle (a
medical publication) and Lifechoice, which is an advisory company (Good, 2012). A
mere 12.4% of the respondents expressed optimism towards the future of South African
healthcare (Good, 2012). Furthermore, the Department of Health itself, confessed to
the public that South African healthcare outcomes are sub-standard when compared to
peer countries, as indicated by increased infant and maternal mortalities (CDE,
2011:32).
Mediclinic, Netcare and Life Healthcare are members of The Hospital Association of
South Africa (HASA) and together with National Health Network (NHN) facilities
constitute for 80% of the South African private hospital industry, with a contribution of
R110 billion to the economy of South Africa in 2010, resulting in an increase in
competition for the attraction of patients (Boshoff & Gray, 2004:28; HASA, 2013).
Econex (2012:3) highlighted the economic importance of the private HASA member
hospitals. These hospitals contribute to the Gross Domestic Product (GDP) and
employment of South Africa and provide significant labour income and tax revenue.
The private healthcare industry in South Africa has grown dramatically, with the number
of beds doubling between 1988 and 1993. This was mainly due to the international
trends toward privatisation and further advanced by the government's policies of
privatisation. This resulted in the migration of doctors from public service to private
practices (Coovadia et al., 2009:826). During the 1990’s, 62% of general practitioners
and 66% of specialists settled their practices within private hospitals. This resulted in
22
admitting their patients to these hospitals. In 2011, it was estimated that the amount of
medical practitioners in private practice increased to 76.2% (Strachan, Zabow & Van
der Spuy, 2011:524).
Doctors have increasing options regarding healthcare facilities in both the public and
private sector, which they can utilise. Hospitals, both in the public and private sector,
have to initiate and maintain relationships with doctors with specific focus on those
factors that increase the doctors' satisfaction (Kohli et al., 2001:173) for long term
sustainability and return on investment. Healthcare facilities therefore have to ensure
that their customer orientation to medical practitioners and their patients are aligned
with the expectations of and the quality services required from medical practitioners.
2.5 DOCTOR RELATIONS
Healthcare providers attempt to align with doctors for various strategic reasons, such as
increase in revenue, enhancement of quality healthcare services, cost control and
effective managed care3.However, research indicated that the majority of these attempts
have failed in the past (Burns, Alexander, Shortell, Zuckerman, Budetti, Gillies &
Waters, 2001:10).
Research has indicated a general worldwide decline in the morale of doctors, although
the reasons for this are not generally known (Edwards, Kornacki & Silversin, 2002:835).
Accountability is on the increase and independence on the decrease. Doctors feel that
regulations, policies and protocols by government and healthcare managers, place
boundaries around their professional lives. The benefits of these regulations are
recognised, however it has a direct impact on the satisfaction of doctors (Edwards et al.,
2002:836). Practicing medicine is an emotionally draining and complicated profession.
This attributed with a self critical personality trait, has increased work stress amongst
doctors (Edwards et al., 2002:836).
3 Definition of managed care: “Any arrangement for health care in which an organisation, such as an HMO, another type of doctor-hospital network, or an insurance company, acts as intermediate between the person seeking care and the physician.” (Medical Dictionary, 2013)
23
Doctors should be equipped with the resources to effectively perform their duties. A
participative approach towards doctors, in the setting of goals and improvement of
clinical outcomes are necessary to improve their morale. Mutual support and respect
are pre-requisites for ensuring a successful relationship between doctors and
healthcare providers (Edwards et al., 2002:837).
Pretorius (2011), Chief Executive Officer of Mediclinic Southern Africa, believes that the
strength of Mediclinic remains in the recruitment and retention of top medical
practitioners. Mediclinic (2013a) are committed to science-based patient centric
healthcare and strive towards providing word-class acute care, but is also focused on
the importance of having medical practitioners in private practice that encompass a
wide range of specialities.
Life Healthcare (2013a) does not employ the doctors that work within its facilities but
opined that doctors are attracted to their hospitals, because of modern facilities, new
technology, quality care provided by their nursing staff and management's
understanding of the doctors’ needs. Life Healthcare (2013a) further indicated that in
order to support their doctors and maintain a first class environment, they invest money
to replace, upgrade and improve their facilities; invest in new hospitals, wards and
theatres, technology and equipment; expand services and capabilities; and invest in
new developments and business opportunities.
Netcare (2013a), as Life Healthcare (2013a), is of the opinion that it provide doctors
with the best possible setting in which they can work as they provide quality nursing
care, the latest technology, word-class facilities and well-trained staff. Netcare (2013a)
further believe that they support doctors by providing excellent patient care to all
patients. They indicated that they strive to have strong partnerships with doctors to
build their organisation and brand. Netcare (2013a) further specified that the
opportunity given to doctors to comment on all aspects of their relationship with the
group, has lead to an ongoing improvement at their facilities.
24
2.6 CHAPTER SUMMARY
Customer centricity is placing the customer at the centre of a company’s marketing
effort (Dictionary.com, 2013). It is a specific approach in doing business that focus on
the customer (Investopedia, 2013). Where customer focused organisations mainly fulfil
customer needs in so far as they are self-serving and address the organisation’s
imperatives, customer centricity is aimed at exploring various ways to satisfy the needs
of customers with greater value deliverance and a more delightful experience
(Finkelstein, 2013).
Within the private healthcare industry, the challenge remains to create and maintain a
positive service culture that continuously embraces an ever changing customer profile.
The implementation and upkeep of service excellence hold numerous advantages for
this industry in both the short and the long term (Scott, 2013:67). Shah et al. (2006:122)
indicated that in general organisations of the 21st Century should embrace customer
centricity as a tool to survive in the marketplace. Thus, private hospitals should also
focus on the need of their customers (the practicing specialists as the focus of this
study) to be treated as partners within a trusted relationship. Accomplishing this, will
provide the private hospitals with the opportunity to distinguish themselves with loyal
specialists and will also provide more stability to them as a business in uncertain times.
The successful management of customer centricity will enable the private hospital to
compete more intensely, act with more confidence, respond to changing market
conditions and reap financial benefits (Shah et al., 2006:122; Sohail, 2003:197; Tyrer,
2009:12). It is evident from the literature that modern organisations should embrace
customer centricity as a contrivance for survival, growth, realising and increasing profits
and the gaining of a competitive advantage.
Within this chapter a distinction was made between customer service and customer
centricity, an overview was given of the health sector within South Africa and doctor’s
relations within private hospitals. Chapter 3 follows with details and explanation of the
empirical study.
25
CHAPTER 3: EMPIRICAL STUDY
In this chapter the results of the empirical research is reported and discussed in terms
of the qualitative results. The results are presented based on the proposed research
questions as indicated in Chapter 1.
3.1 RESEARCH DESIGN
For the purpose of the objectives of this study, a qualitative approach in the form of
interviews was used. Welman, et al. (2005:188) describe qualitative research as a
descriptive form and is ideal in the description of groups, communities and
organisations. Qualitative research allows the researcher the opportunity to truly
understand the in-depth feelings and motivations of participants (McDaniel & Gates,
2005:109; Nuttall, et al., 2011:153). Qualitative research allows for theoretical insights
to be tested and expose theoretical constraints (Bansal & Corley, 2012:513).
3.2 PARTICIPANTS
A purposeful sample of specialists practicing predominantly in a private hospital was
applied. Interviews were conducted until saturation point was reached. In total eleven
interviews were carried out. Descriptive information of the sample is given in Table 3.1.
26
Table 3.1: Characteristics of the participants
Description Range Sample (n=11)
Frequency
Frequency
(Percentage)
Age
20 – 30 0 0.00%
31 – 40 5 45.45%
41 – 50 0 0.00%
51 – 60 6 54.55%
61 + 0 0.00%
Gender Male 9 81.82%
Female 2 18.18%
Total practical years
experience
0 – 10 4 36.36%
11 – 20 1 9.09%
21 – 30 2 18.18%
31 – 40 4 36.36%
Experience within a
private hospital
environment
0 – 10 5 45.45%
11 – 20 0 0.00%
21 – 30 6 54.55%
31 – 40 0 0.00%
Speciality
Ophthalmic surgery 1 9.09%
Gynaecology 2 18.18%
General surgery 2 18.18%
Paediatrics 2 18.18%
Anaesthesiology 2 18.18%
Orthopaedic surgery 1 9.09%
Internal medicine 1 9.09%
The study population consisted mainly of White (100%), male (81.8%) participants
between the ages of 31 to 40 years (45.4%) and 51 and 60 years (54.6%). The
average years in practice in total were 21.4 years whereof 15.3 years were spent in a
private hospital. Specialities included Ophthalmic surgery (1 participant), Gynaecology
(2 participants), General surgery (2 participants), Paediatrics (2 participants),
Anaesthesiology (2 participants), Orthopaedic surgery (1 participant) and Internal
medicine (1 participant).
27
3.3 RESEARCH RESULTS
The interviews started off with two main questions, after which the interviewees were
probed to expand on the answers and responses they presented. These questions
aspired to give a better indication of how specialists define customer centricity and what
their expectations are from private hospitals in terms of customer centricity.
The first question focused on how the participants define and/or conceptualise customer
centricity. The themes that were extracted are indicated in Table 3.2.
Table 3.2: Defining customer centricity
Theme Frequency (n) Percentage
a) Customer focus 16 27.59%
b) Satisfaction 14 24.14%
c) Quality service 10 17.24%
d) Facility and resources 5 8.62%
e) Accessibility 5 8.62%
f) Safety 4 6.90%
g) Cost effective 4 6.90%
a) Customer focus
Customer centricity involves all activities and operations to place the customer at the
centre of a company’s marketing effort with the objective to focus on customers rather
than sales (Dictionary.com, 2013). It is a specific approach in doing business that
focus on the customer (Investopedia, 2013).
Participants indicated that centralising service delivery and resources around the
customer is an important part of customer centricity. Typical responses included: “Die
kliënt is jou primêre verantwoordelikheid”; “Om die kliënt die fokus van die
dienslewering te maak” and “‟n Pasiënt is dan vir daai oomblik my enigste kliënt en my
hele praktyk wentel om basies daai pasiënt”. Results confirmed that 27.59% of the
responses support customer focus.
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b) Satisfaction
With the change in the complexity of customer expectations it is becoming more difficult
and challenging for organisations to fulfil the expectations of the customer, and still
make a profit (Millstein, 2007:2A; Tyrer, 2009:11). Heskett et al. (1994:164) also
indicated that when customers are satisfied with the services they receive that their
loyalty towards the organisation will increase. Organisations having knowledge of
customers’ needs can provide the right service to the customer at the right time and
place (Womack & Daniel, 2005:61).
Participants also highlighted the following elements of customer satisfaction: focusing
on the satisfaction of the customer, creating a feeling that the customer is an important
asset of the organisation, providing effective services and adequate service outcomes.
24.14% of the responses of participants pointed to satisfaction as an important part of
customer centricity when considering service delivery. Typical responses included:
“Effektiewe diens wat hy mee tevrede is en waavoor hy bereid is om te betaal”; “Die
diens wat jy lewer, moet gelewer word teen „n baie hoë standaard, op „n koste
effektiewe manier, sonder vermorsing van tyd, met pasiënt tevredenheid as einddoel”
and “effektiewe diens wat hy mee tevrede is en waavoor hy bereid is om te betaal”.
c) Quality service
It has been argued that the quality and level of customer service has decreased and
that this can be attributed to a lack of support or understanding at the executive and